Tuesday Closing Livestock Market Summary - Cattle Contracts Fared Better Than Expected

GENERAL COMMENTS:

Even though Tuesdays are generally tough on cattle contracts, both cattle markets were able to close the day either mixed or mostly higher, and lean hog contracts had a successful day in both nearby and deferred contracts. Hog prices are up on the National Direct Afternoon Hog Report, up $0.10 with a weighted average of $42.69. December corn is up 4 1/2 cents per bushel and December soybean meal is up $1.70. The Dow Jones Industrial Average is steady and NASDAQ is up 21.81 points.

LIVE CATTLE:

Live cattle contracts made a comeback after the noon hour Tuesdsay in deferred contracts. Closing the day mostly higher except in the spot and closest contract, live cattle contracts closed $0.02 to $0.12 higher. December live cattle are down $0.12 at $119.75, February live cattle are down $0.10 and April live cattle are up $0.10 at $127.05. Cash cattle trade has yet to present itself and most likely won't get under way until Wednesday afternoon or sometime Thursday.

Closing boxed beef prices: choice up $1.91 ($240.50) and select up $2.54 ($216.23) with a movement of 92 loads (49.38 loads of choice, 19.16 loads of select, 6.51 loads of trim and 17.34 loads of ground beef). Tuesday's slaughter is estimated at 119,000 head: steady with a week ago, and down 1,000 head from a year ago.

WEDNESDAY'S CASH CATTLE CALL: $1.00 higher. Given that boxed beef prices are rallying still, feeder calf prices are up and that slaughter remains aggressive -- cash cattle trade is aligning for another positive week so long as the board holds.

FEEDER CATTLE:

Feeder cattle contracts made the best of Tuesday after the noon hour and closed slightly higher in nearby contracts, and just mildly lower in deferred. November feeder cattle are up $0.22 at $147.80, January feeder cattle are steady at $147.12 and March feeders are up $0.12 at $146.82.

On and estimated run of 6,498 head (down 934 head from the previous week) all weights of steer calves sold steady to $2.00 higher. Heifer calves under 600 pounds sold steady to $1.00 higher with the exception of 450 to 500 pound heifers, which sold $3.00 to $5.00 higher, heifers over 600 pounds sold $3.00 to $5.00 higher with instances of $8.00 higher. Trade was very active, and demand was good. The CME feeder cattle index for 11/11/19: up $0.53 at $147.25.

LEAN HOGS:

Good news may be close as President Trump said that the United States and China are "close" to complete the phase one trade deal, though mentioning that both sides still have some terms to work out. The President did indicate that China is anxious to come to terms with the agreement and that the U.S. is thoroughly exanimating the deal before jumping in frivolously.

Lean hogs contracts closed the day higher across the entire board. December lean hogs closed $1.42 higher at $64.72, February lean hogs closed up $1.82 at $75.55 and April lean hogs closed $1.37 higher at $82.02. Pork cutouts totaled 366.33 loads with 331.20 loads of pork cuts and 35.13 loads of trim. Pork cutout values: up $2.19 at $88.53. The CME lean hog index: down $0.85 at $59.44.

WEDNESDAY'S CASH HOG CALL: Steady. Upon hearing that the phase one trade agreement could be close to being complete, the cash hog market could see a jump in time once the agreement is signed, but until then steady is the most reasonable projection.

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